Fed Slashes Rates Again to Shore Up Economy as Coronavirus Spreads

Fed Slashes Rates Again to Shore Up Economy as Coronavirus Spreads

Reuters – March 16, 2020


Excerpt below:

(Reuters) – The Federal Reserve unexpectedly cut interest rates on Sunday for the second time in less than two weeks, an emergency move to help shore up the U.S. economy as a coronavirus pandemic spreads worldwide.

In a statement, the central bank said it was cutting rates to a target range of 0% to 0.25%.

The Fed included dramatic moves to keep credit flowing to businesses and families, encouraging banks to tap trillions of dollars in equity and liquid assets built up as capital buffers since the global financial crisis to support people whose lives may be upended by the virus.


“They fired a full broadside…Any additional policy response will have to be fiscal.

“My guess is another $200 billion to $500 billion needed quickly in order to offset damages from various shutdowns.

“Fed action is scaring folks because of unprecedented response. Markets see Fed replay of 2007-8-9 and are assuming a repeat of financial crisis is at hand.”

Read the full article at NYT: https://www.nytimes.com/reuters/2020/03/16/business/16reuters-fed-reserve-instant-view.html

Links to other websites or electronic media controlled or offered by Third-Parties (non-affiliates of Cumberland Advisors) are provided only as a reference and courtesy to our users. Cumberland Advisors has no control over such websites, does not recommend or endorse any opinions, ideas, products, information, or content of such sites, and makes no warranties as to the accuracy, completeness, reliability or suitability of their content. Cumberland Advisors hereby disclaims liability for any information, materials, products or services posted or offered at any of the Third-Party websites. The Third-Party may have a privacy and/or security policy different from that of Cumberland Advisors. Therefore, please refer to the specific privacy and security policies of the Third-Party when accessing their websites.

Sign up for our FREE Cumberland Market Commentaries

Cumberland Advisors Market Commentaries offer insights and analysis on upcoming, important economic issues that potentially impact global financial markets. Our team shares their thinking on global economic developments, market news and other factors that often influence investment opportunities and strategies.